The time for a Sarepta Therapeutics (SRPT) takeover is 'ripe' states analyst

November 25, 2022 1:01 PM EST
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Price: $118.10 +0.22%

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    28 Buy, 9 Hold, 1 Sell

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    Up: 5 | Down: 17 | New: 26
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Oppenheimer analyst Hartaj Singh said in a note Friday that Sarepta Therapeutics (NASDAQ: SRPT) is "ripe" for a takeover.

Singh, who has an Outperform rating and a $150 price target on the stock, explained that while the M&A Buy thesis for Sarepta has been explained well, they believe the timing might be "more ripe currently."

Sarepta Therapeutics shares are down 0.4% at the time of writing. However, they have climbed 27% so far in 2022.

Oppenheimer upgraded Sarepta in December last year, stating it had a "best-in-class rh74 AAV capsid."

In today's note, Singh wrote: "The best-in-class safety profile for SRPT's rh74 AAV vector is bolstered by the company's leading manufacturing expertise in this area; possibly creating a significant moat around the muscular dystrophy programs. The LGMD programs and the RNA-based PPMO programs are underappreciated. We stay bullish."

"The optics for a SRPT takeout are easy, in our view: (1) a leader in gene therapy, (2) a leader in muscular dystrophies (DMD, LGMDs), (3) a fairly diverse pipeline with RNA-targeted therapies and gene editing approaches also, and (4) a strong financial backdrop to achieve its objective to be a leader in genetic medicines in rare diseases. We add some nuance to these views," he added.

By Sam Boughedda

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